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IASBABA 60 DAY PLAN 2020 – ECONOMY COMPILATION (WEEK 1 & 2)
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Q.1) In the context of Indian economy, consider the following statements
1. The Gross domestic product has steadily increased in the last five years
2. The growth rate in per capita income has steadily increased in the last five years
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.1) Solution (a)
Statement 1 Statement 2
Correct Incorrect
While the growth rate of GDP has fluctuated in the last five years, it has never become negative. The Gross domestic product has steadily increased in the last five years.
The growth rate of Per capita income decreased to 8.6% in 2017-18 from 9.3% in 2016-17. It further increased to 10.0% in 2018-19.
• In such questions, double-check whether an increase/decrease in ‘absolute value’ is
being asked or if an increase/decrease in ‘growth rate’ is being asked.
Q.2) Which of the following can lead to the growth of Human Capital?
1. Investment in Education
2. On the job training
3. Migration
Choose the correct answer using the codes given below
a) 1 only
b) 1 and 2 only
c) 1 and 3 only
d) All of the above
Q.2) Solution (d)
Statement 1 Statement 2 Statement 3
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Correct Correct Correct
Investment in Education leads to better skills and thus adds to the human capital formation.
On the job training too leads to better skills and thus adds to the human capital formation
Migration of people adds to the human capital formation as it facilitates the utilization of inactive and underdeveloped skills of an individual
Human capital can be augmented by
• Investment in Education
• Investments in health
• On the job training
• Migration
• Information
Q.3) The Gross National Product of India considers
a) The Income of only resident and non-resident citizens of a country
b) The Income of only resident citizens of a country
c) The Income of both resident citizens and foreigners who reside within Indian territory
d) The Income of resident, non-resident citizens and foreigners who reside within Indian
territory
Q.3) Solution (a)
GNP (Gross National Product)
• The word “national” here refers to all the citizens of a country
• It is the total value of the total output or production of final goods and services
produced by the nationals of a country during a given period of time, generally one
year.
• It considers the income of both resident and non-resident citizens of a country while
the income of foreigners who reside within the geographical boundary of the country is
excluded.
Q.4) Which of the following are considered as Final Goods?
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1. Services of a doctor
2. Vegetables bought by a restaurant to serve customers
3. Machine bought by a company as an investment
Choose the correct answer using the codes given below
a) 1 only
b) 1 and 3 only
c) None of the above
d) All of the above
Q.4) Solution (b)
Elimination:
Second statement can be easily eliminated as the restaurants are not final consumers. They add
value to the vegetables (by cooking and serving) and charge the customers.
Statement 1 Statement 2 Statement 3
Correct Incorrect Correct
Service of a doctor is considered as a consumer final good.
Vegetables bought by a restaurant are considered as intermediate goods.
Capital goods bought by a company are considered as final goods.
• An item that is meant for final use and will not pass through any more stages of
production or transformations is called a final good.
• Final goods are of two types –
o Capital goods (like machinery) bought by companies as an investment.
o Goods used for final consumption by households.
• Consumer final goods are again divided into
o Durable – TV, car etc.
o Semi-durable – Clothes, shoes etc.
o Non-durable – Milk, bread etc.
o Services – of teachers, doctors etc.
Q.5) National income (NI) in India is a term used for
a) Net National Product at market cost
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b) Gross National Product at factor cost
c) Net National Product at factor cost
d) Net Domestic Product at market cost
Q.5) Solution (a)
National Income
• Earlier, National Income was a term used for Net National Product at factor cost
(NNPFC).
• Since January 2015, the CSO has switched over to calculating it at market price.
• NNP = GNP − Depreciation
Q.6) Consider the following statements regarding Real and Nominal GDP
1. Real GDP is calculated using the price of goods and services at the base year
2. Nominal GDP is calculated using the price of the goods and services in that particular
year
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.6) Solution (c)
Statement 1 Statement 2
Correct Correct
Real GDP is national income at constant price.
Nominal GDP is national income at current price.
Real GDP
• National income at constant price = Q*P
• Where Q is the quantity of goods and services in a particular year
• P is the price of the base year (constant price)
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Nominal GDP
• National income at current price = Q*P
• Where Q is the quantity of goods and services in a particular year
• P is the price of the goods and services in that particular year (current price)
Q.7) Which among the following activities constitute Secondary sector in an Economy
1. Mining
2. Construction
3. Manufacturing
Choose the correct answer using the codes given below
a) 1 and 3 only
b) 2 and 3 only
c) 3 only
d) All of the above
Q.7) Solution (b)
Primary Sector
• Agriculture
• Mining
• Forestry
• Grazing
• Hunting and gathering
• Fishing
• Quarrying
Secondary Sector
• Manufacturing
• Processing
• Construction
Q.8) Consider the following statements regarding the Human Development Index (HDI)
1. It is an index prepared by the United Nations Development Program
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2. The basic dimensions are - long and healthy life, education and a decent standard of
living
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.8) Solution (c)
Statement 1 Statement 2
Correct Correct
It is an index prepared by the United Nations Development Program.
The basic dimensions are - long and healthy life, education and a decent standard of living.
• The basic dimensions are determined by -
o Long and healthy life - measured by life expectancy at birth.
o Access to Education - measured by expected years of schooling of children at
school-entry age and mean years of schooling of the adult population.
o A Decent standard of living - measured by Gross National Income per capita
adjusted for the price level of the country.
Q.9) The goods for which the demand increases as the price increases, because of its
exclusive nature and appeal as a status symbol is called
a) Giffen goods
b) Veblen goods
c) Luxury goods
d) Inferior goods
Q.9) Solution (b)
• Both Veblen and Giffen goods defy standard economic and consumer demand theory.
• Veblen goods - a good where demand rises as price rises because people feel its higher
price reflects greater status.
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• Giffen goods - A Giffen good is a low income, non-luxury product that has very few close
substitutes. Since there are few substitutes for Giffen goods, consumers continue to
remain willing to buy a Giffen good when the price rises.
Q.10) In the context of Indian economy, consider the following statements
1. The Share of Services sector in India’s GVA (Gross value added) has steadily increased in
the last five years
2. The Share of Primary sector in India’s GVA (Gross value added) has steadily decreased in
the last five years
Choose the correct statement/s using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.10) Solution (a)
Statement 1 Statement 2
Correct Incorrect
Share of Services sector has steadily increased in the last five years
Share of Primary sector was 17.7% in FY 15-16. It increased to 17.9 in FY 16-17 and then went on to decrease to 17.1 in FY 17-18. Thus it has not steadily declined. It has increased to 18.57 in FY 18-19.
Q.11) If some manual laborers are fired from a company due to the introduction of
automation, then what kind of unemployment do they face?
a) Disguised Unemployment
b) Structural unemployment
c) Hidden unemployment
d) Frictional unemployment
Q.11) Solution (b)
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• Structural unemployment is caused by a mismatch of skills between the unemployed
and available jobs.
• Structural unemployment usually happens because of technological change. When new
technologies are introduced, some jobs and skills can be replaced by machines, a
process known as automation.
Q.12) Consider the following statements regarding Pradhan Mantri Yuva Yojana
1. It aims to create an enabling ecosystem for entrepreneurship promotion among youth
2. It has been launched by the Ministry of Youth Affairs and Sports
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.12) Solution (a)
Elimination
Statement 2 can be eliminated if one knows the objective of the scheme.
Statement 1 Statement 2
Correct Incorrect
It aims to create an enabling ecosystem for entrepreneurship promotion among youth
It is being implemented by the Ministry of Skill Development and Entrepreneurship.
PM Yuva Yojna
• It is a centrally sponsored Scheme on entrepreneurship education and training.
• It is being implemented by the Ministry of Skill Development and Entrepreneurship.
• The Scheme aims at creating an enabling ecosystem for Entrepreneurship development
through entrepreneurship education and training, Advocacy and easy access to
entrepreneurship support network and Promoting social enterprises for inclusive
growth.
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Q.13) Consider the following goods
1. Grazing land
2. Street light
3. Service of Police
The opportunity cost for providing which of the above goods is zero?
a) 1 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Q.13) Solution (a)
Statement 1 Statement 2 Statement 3
Correct Incorrect Incorrect
Opportunity cost is zero. But rivalry in consumption exists.
Opportunity cost is not Zero. Rivalry in consumption does not exist.
Opportunity cost is not Zero. Rivalry in consumption does not exist.
• Opportunity cost is an economics term that refers to the value of what you have to give
up in order to choose something else.
• As per microeconomics, opportunity cost is zero for free goods such as Air and common
goods such as fish / grazing land.
• For public goods such as street light, Police service, judiciary service, defence etc.
opportunity cost is involved.
• If police service was not provided then the government could have spent more money
on street lights. Similarly, if street lights are not needed then more money can be
invested in the police force. Thus, an opportunity cost is involved.
Q.14) The Agriculture Census 2015-16 data shows that
1. The average size of operational holding has declined
2. The percentage share of female operational holders has increased
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
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c) Both 1 and 2
d) Neither 1 nor 2
Q.14) Solution (c)
Statement 1 Statement 2
Correct Correct
The average size of operational holding declined to 1.08 hectares (ha) in 2015-16 compared to 1.15 ha in 2010-11, as per the provisional data.
The census also found out that the percentage share of female operational holders has increased from 12.79 per cent in 2010-11 to 13.87 per cent in 2015-16.
• Agriculture census for 2015-16 that showed a 1.53 per cent decline in the total operated
area at 157.14 million hectares as compared to 2010-11 data.
• In terms of the operated area, the share of women increased from 10.36 per cent to
11.57 per cent.
Q.15) Which of the following are steps taken by the Government for the eradication of
poverty?
1. National Food Security Act
2. Pradhan Mantri Jan Arogya Yojana
3. Mahatma Gandhi National Rural Employment Guarantee Act
Choose the correct answer using the codes given below
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Q.15) Solution (d)
• All 3 government schemes are indirect methods of poverty alleviation. They tackle the
vicious cycle of poverty and thus help in its eradication.
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Q.16) The tax system followed by India is
a) Progressive
b) Proportional
c) Regressive
d) None of the above
Q.16) Solution (a)
• Progressive taxation - A progressive tax is a tax that imposes a lower tax rate on low-
income earners compared to those with a higher income. India follows this system.
• Proportional tax - A proportional tax is an income tax system where the same
percentage of tax is levied on all taxpayers, regardless of their income.
• Regressive tax - A regressive tax is a tax that takes a greater percentage of income from
those who earn less, than from those with a higher income.
Q.17) Consider the following statements regarding India’s tax collection
1. The share of Personal Income tax has steadily increased for the last five years
2. The share of Corporate Tax is higher than the share of Goods and Services Tax for the
yeas 2019-20
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
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Q.17) Solution (a)
Statement 1 Statement 2
Correct Incorrect
The share of Personal Income tax has steadily increased for the last five years
The share of GST is higher than the share of Corporate Tax for the year 2019-20
Share of personal income tax -
• Share of GST has surpassed the share of Corporation tax. As per 1st revised estimate,
total Corporate tax collection is 610,500 crores while total GST collection is 612,327
crores.
Q.18) Consider the following statements regarding Economic Growth and Development
1. Growth is quantitative while development is qualitative
2. Economic growth is necessary for development
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.18) Solution (c)
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Statement 1 Statement 2
Correct Correct
Growth is a quantitative factor. It can be either positive or negative. Development is a qualitative factor and is always value positive.
While mere growth does not guarantee development, growth is necessary for development i.e Economic growth is necessary, but an insufficient condition for development.
Q.19) Consider the following statements
1. While Real GDP calculation takes inflation in to account, Nominal GDP does not
2. Nominal GDP is often higher than real GDP
3. GDP in India is calculated by the Central Statistics Office
Which of the above statements is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Q.19) Solution (c)
Statement 1 Statement 2 Statement 3
Correct Correct Correct
Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices, and is often referred to as "constant-price," "inflation-corrected" GDP, or "constant dollar GDP." Unlike nominal GDP, real GDP accounts for changes in price levels and provides a more accurate figure of economic growth.
Nominal GDP is a
macroeconomic assessment
of the value of goods and
services using current prices
in its measure.
While nominal GDP by definition reflects inflation, real GDP uses a GDP deflator to adjust for inflation, thus reflecting only changes in real output. Since inflation is generally a positive number, a country's nominal GDP is generally higher than its real GDP.
GDP in India is calculated by the Central Statistics Office It is published on a quarterly basis and comes with 60 days lag
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Q.20) Consider the following statements regarding PM Shram Yogi Maan-dhan scheme
1. It is launched by the Ministry of Labour and Employment
2. Any worker in the unorganized sector can enrol in the scheme
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.20) Solution (a)
Statement 1 Statement 2
Correct Correct
PM Shram Yogi Maandhan scheme has been launched by the Ministry of Labour and Employment.
Not all workers in the organized sector can enroll. There are certain eligibility criteria.
• It assures monthly pension of Rs 3,000 for workers in the unorganized sector.
• Eligibility –
o Income less than 15,000 per month.
o Shouldn’t be covered under NPS, EPFO or ESIC.
o Age should be between 18-40 years.
• It is a voluntary and contributory scheme.
Q.21) Which of the following graphs shows the degree of inequality in a society
a) Lorenz curve
b) Phillips curve
c) Engel curve
d) Laffer curve
Q.21) Solution (a)
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• A Lorenz curve is a graph used in economics to show inequality in income spread or
wealth.
• The Gini index can be calculated from a Lorenz curve.
• The x-axis on a Lorenz curve typically shows the portion or percentage of the total
population, and the y-axis shows the portion of total income/ wealth.
Q.22) Which of the following committees is/are associated with the estimation of poverty?
a) Lakdawala committee
b) Alagh committee
c) Saxena committee
d) All the above
Q.22) Solution (d)
• All 3 committees are associated with the estimation of poverty
• Lakdawala committee - A task force was formed by the government of India in 1993,
with DT Lakdawala as chairman. It recommended that Consumption expenditure should
be calculated based on calorie consumption as earlier.
• Alagh Committee - a task force constituted by the Planning Commission in 1979 for
poverty estimation, chaired by YK Alagh. It constructed a poverty line for rural and
urban areas based on nutritional requirements.
• N.C. Saxena Committee - was set up by the Ministry of Rural Development to advise it
on the suitable methodology for BPL Census and not for estimation of poverty. But it
provided recommendations for estimation of poverty also.
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Q.23) If a person quits his job to look for a better job, then what kind of unemployment does
he/she face?
a) Disguised Unemployment
b) Structural unemployment
c) Hidden unemployment
d) Frictional unemployment
Q.23) Solution (d)
Frictional Unemployment:
• The Frictional Unemployment also called as Search Unemployment, refers to the time
lag between the jobs when an individual is searching for a new job or is switching
between the jobs.
• In other words, an employee requires time for searching a new job or shifting from the
existing to a new job, this inevitable time delay causes frictional unemployment.
• It is often considered as voluntary unemployment because it is not caused due to the
shortage of job, but in fact, the workers themselves quit their jobs in search of better
opportunities.
Q.24) Consider the following statements regarding the Tendulkar committee on poverty
estimation
1. The current official measures of poverty are based on the Tendulkar poverty line
2. It Incorporates private expenditure on health and education while estimating poverty
3. Consumption expenditure is calculated based on calorie consumption
Choose the correct answer using the codes given below
e) 1 only
f) 1 and 2 only
g) 1 and 3 only
h) All of the above
Q.24) Solution (b)
Statement 1 Statement 2 Statement 3
Correct Correct Incorrect
The current official measures It Incorporates private A Shift from Calorie
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of poverty are based on the Tendulkar poverty line.
expenditure on health and
education while estimating
poverty
Consumption based Poverty Estimation. - It based its calculations on the consumption of the items like cereal, pulses, milk, education etc.
Tendulkar Committee
• An Expert Group was constituted by the Planning Commission in 2009, chaired by
Suresh Tendulkar, to review methodology for poverty estimation and to address the
following shortcomings of the previous methods.
• Tendulkar committee computed poverty lines for 2004-05 at a level that was equivalent,
in Purchasing Power Parity (PPP) terms to Rs 33 per day.
Q.25) Consider the following statements regarding Sustainable Development Goals India
index
1. It is carried out by Niti Aayog in collaboration with Ministry of statistics and programme
implementation
2. It provides a holistic view on the social, economic and environmental status of all the
states and Union territories
Choose the correct answer using the codes given below
e) 1 only
f) 2 only
g) Both 1 and 2
h) Neither 1 nor 2
Q.25) Solution (c)
Statement 1 Statement 2
Correct Correct
It is carried out by Niti Aayog in collaboration
with Ministry of statistics and programme
implementation.
The SDG India Index is intended to provide a holistic view on the social, economic and environmental status of the country and its States and UTs.
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SDG India Index
• It is carried out by Niti Aayog in collaboration with Ministry of statistics and programme
implementation.
• The Index tracks the progress of all the States and Union Territories (UTs) on a set of 62
National Indicators.
• The SDG India Index is intended to provide a holistic view on the social, economic and
environmental status of the country and its States and UTs.
• HP, Kerala and TN are in the top 3 and on the path to achieve SDG goals.
• Assam, Bihar and UP are at the bottom of the ranking.
Q.26) Poverty estimation in India is carried out by
a) Niti Aayog
b) National Sample Survey Office
c) Rangarajan Committee
d) Ministry of Statistics and Programme Implementation
Q.26) Solution (a)
• Poverty estimation in India is carried out by NITI Aayog’s task force.
• Calculation of poverty line by Niti Aayog is based on the data captured by the National
Sample Survey Office under the Ministry of Statistics and Programme Implementation
(MOSPI).
• Earlier, Planning commission was responsible for calculating the poverty line in India.
Q.27) Consider the following statements regarding the National Rural Economic
Transformation Project
1. It supports enterprise development programmes for rural poor women and youth
2. It is a part of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
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Q.27) Solution (c)
Statement 1 Statement 2
Correct Correct
It supports enterprise development programmes for rural poor women and youth
It is a part of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
National Rural Economic Transformation Project (NRETP)
• It supports enterprise development programmes for rural poor women and youth.
• Special emphasis on targeting the poorest of the poor and the most vulnerable
communities and their financial inclusion.
• It will also support skill development among youth.
• It is a part of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission.
• Loan assistance for the project has been provided by the World Bank.
Q.28) Consider the following statements regarding Fixed-term Employment
1. The contract can be renewed or terminated according to the performance of the worker
2. Workers will be entitled to benefits available to permanent workers
3. Currently, fixed-term employment is allowed only in the textile sector
Choose the statement/s using the codes given below
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) All of the above
Q.28) Solution (b)
Statement 1 Statement 2 Statement 3
Correct Correct Incorrect
The contract can be renewed or terminated according to the performance of the worker.
Workers will be entitled to benefits available to permanent workers.
Fixed-term employment is applicable to all sectors.
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• Under Fixed-term employment, a company or an enterprise hires an employee for a
specific period.
• The contract can be renewed or terminated according to the performance of the worker
• Under FTE, workers will be entitled to benefits available to permanent workers.
• Thus, Contract workers, if turned to FTE workers, stand to gain in terms of the statutory
benefits
• In March 2018, the Centre notified on fixed-term employment (FTE) for all sectors.
Before, it was only applicable to the textile sector.
Q.29) Consider the following statements regarding Sankalp Scheme
1. It aims to implement the mandate of the National Skill Development Mission
2. It is a Central Sector Scheme in collaboration with the World Bank
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.29) Solution (a)
Statement 1 Statement 2
Correct Incorrect
It aims to implement the mandate of the National Skill Development Mission (NSDM).
It is a Centrally Sponsored Scheme in collaboration with the World Bank.
• Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP) is an outcome-
oriented programme of Ministry of Skill Development & Entrepreneurship (MSDE) with
a special focus on decentralised planning and quality improvement.
Q.30) The Poverty and Shared Prosperity Report is published by
a) International Monetary Fund
b) United Nations Conference on Trade and Development
c) World Economic Forum
d) World Bank
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Q.30) Solution (d)
• The Poverty and Shared Prosperity provides estimates on trends in global poverty and
shared prosperity.
• The 2018 edition — Piecing Together the Poverty Puzzle —broadens the ways we define
and measure poverty
• It introduces a multi-dimensional poverty measure that is anchored on household
consumption and the international poverty line of $1.90 per person per day.
• It is published by the World Bank.
Q.31) Consider the following statements regarding The Global Multidimensional Poverty
Index
1. It is developed by the Oxford Poverty & Human Development Initiative (OPHI) and the
United Nations Development Programme
2. India has the largest number of people living in multidimensional poverty according to
its latest report
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.31) Solution (c)
Statement 1 Statement 2
Correct Correct
The global MPI was developed by OPHI with the UN Development Programme (UNDP) for inclusion in UNDP’s flagship Human Development Report in 2010.
India has the largest number of people living
in multidimensional poverty according to
Global MPI 2018.
• The global Multidimensional Poverty Index (MPI) is an international measure of acute
multidimensional poverty covering over 100 developing countries.
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• The MPI assesses poverty at the individual level. If someone is deprived in a third or
more of ten (weighted) indicators, the global index identifies them as ‘MPI poor’.
Q.32) Atal Tinkering Labs aim to
a) Stimulate innovation among students of class 6 to 12th
b) Fast track Research and Academic Infrastructure Development in the country
c) Foster culture of innovation in Higher education agencies
d) Boost joint research with global universities
Q.32) Solution (a)
• Atal Tinkering Labs (ATLs) are designated 1500 sqft. spaces, with state-of-the-art
facilities, set aside for innovating.
• Atal tinkering lab aims to stimulate innovation among students of class 6 to 12th.
• The tinkering lab is a workspace where young minds can give shape to their ideas
through hands-on do-it-yourself mode and learn innovation skills.
• It is one of the main components under Atal Innovation mission of Niti Aayog.
Q.33) Which of the following measures will help India obtain full benefits of demographic
dividend
1. Promoting skill development
2. Privatization of higher education
3. Promoting the education of girl child
Choose the answer using the codes given below
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Q.33) Solution (b)
Statement 1 Statement 2 Statement 3
Correct Incorrect Correct
Promoting skill development Privatization of higher Promoting the education of
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will help India obtain full benefits of demographic dividend.
education will not necessarily lead to better educational outcomes. Thus it cannot be said that privatizing higher education will lead to a better demographic dividend
girl child will improve literacy levels and employability.
Q.34) UK Sinha committee recently submitted its report on?
a) Special Economic Zone policy
b) Measures needed to rejuvenate MSMEs
c) Reviewing and revamping the official statistics database
d) Financial Technology sector
Q.34) Solution (b)
• The committee to study the problems faced by MSMEs was chaired by U.K. Sinha.
• It was set up by the Reserve Bank of India.
• The committee has suggested a Rs.5,000 crore stressed asset fund for domestic micro,
small and medium enterprises (MSMEs).
• The fund could work in tandem with RBI-mandated restructuring schemes or bank-led
NPA revival solutions for MSMEs.
Q.35) Which of the following are factors responsible for inequality in India?
1. Jobless growth
2. Tax evasion
3. Social Inclusion
Choose the answer using the codes given below
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Q.35) Solution (a)
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Elimination
Social inclusion can be easily eliminated as inclusion will lead to a much more equal and
inclusive growth.
• Some of the reasons for inequality in India are
o Tax evasion,
o Unemployment,
o Inequality in the ownership of assets,
o Laws of inheritance,
o Cost of professional training,
o Inflation,
o Corruption and smuggling,
o Greater Burden of indirect taxation
o Social exclusion
Q.36) Consider the following statements regarding the participation of women in labour force
1. Over the last decade, an increase in access to education has led to an increase in India’s
Female Labour Force Participation Rate
2. Legislations such as Maternity Benefits Act and Sexual Harassment of Women at
Workplace Act can have a positive effect on female Labour Force Participation Rate
Choose the correct answer using the codes given below
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.36) Solution (b)
Elimination
Low level of Female labour participation is constantly in the news. Thus it can be easily
eliminated.
Statement 1 Statement 2
Incorrect Correct
The female labour force participation in India has fallen to a historic low of 23.3% in 2017-
Maternity Benefits Act and Sexual Harassment
of Women at Workplace Act have a positive
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18 from 36.7% in 2005. effect on female Labour Force Participation
Rate.
• The female labour force participation in India has fallen to a historic low of 23.3% in
2017-18 from 36.7% in 2005.
• Just nine countries around the world, including Syria and Iraq, now have a fewer
proportion of working women than India.
• Addressing issues faced by women at the workplace such as sexual harassment, gender
wage gap and flexibility during pregnancy and motherhood can have a positive effect on
their workforce participation rate.
• Thus, the Maternity Benefits Act and Sexual Harassment of Women at Workplace Act
has a positive effect on female Labour Force Participation Rate.
Q.37) Consider the following statements about Periodic Labor Force Survey 2107-18
1. It is an annual survey released by Central Statistical Organization
2. The survey provides only unemployment data for various states
3. Nagaland has the highest unemployment rate among the states
Which of the above statements are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 3 only
Q.37) Solution (d)
Statement 1 Statement 2 Statement 3
Incorrect Incorrect Correct
Ministry of Statistics and Programme Implementation has launched a new regular employment-unemployment survey, namely, Periodic Labour Force Survey (PLFS) during April, 2017 with certain changes in survey methodology, data collection mechanism and sampling
The PLFS has been launched
with an objective of
measuring quarterly changes
of various labor market
statistical indicators in urban
areas as well as generating
annual estimates of these
indicators both for rural and
urban areas, which can be
Nagaland has the highest unemployment rate among the states at 21.4% followed by Goa and Manipur Meghalaya the lowest at 1.5%
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design vis-à-vis the earlier quinquennial (once in every five years) Employment and Unemployment surveys of NSSO.
used for policy making.
Q.38) Consider the following statements about PM-KISAN scheme?
1. It is a central sector scheme implemented by ministry of Agriculture and Farmer welfare
2. It provides for an income support of Rs 6,000 per year is provided to all farmer families
across the country in three equal instalments of Rs 2,000 each
3. The entire responsibility of identification of beneficiary farmer families rests with the
State / UT Governments
Which of the above statements are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above
Q.38) Solution (d)
Statement 1 Statement 2 Statement 3
Correct Correct Correct
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector scheme with 100% funding from Government of India.
Under the Scheme an income
support of Rs 6,000 per year is
provided to all farmer families
across the country in three
equal installments of Rs 2,000
each every four months.
Definition of family for the
Scheme is husband, wife and
minor children.
All Institutional Land holders are not covered in the scheme
The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments. The fund is directly transferred to the bank accounts of the beneficiaries.
Q.39) The 2019 Nobel Memorial Prize in Economics Sciences was awarded to Abhijit Banerjee,
Esther Duflo, and Michael Kremer
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a) for their experimental approach to alleviating global poverty
b) for integrating climate change into long-run macroeconomic analysis
c) for integrating technological innovations into long-run macroeconomic analysis
d) for their contributions to behavioural economics
Q.39) Solution (a)
The 2019 Nobel Memorial Prize in Economics Sciences was awarded to Abhijit Banerjee, Esther
Duflo, and Michael Kremer “for their experimental approach to alleviating global poverty.”
Their experimental work has changed the culture of economics, especially development
economics.
It helped change deep assumptions about how individuals make decisions and about what
economic development is. It changed the way many development economists work, where they
work, and the kinds of people they work with.
Q.40) Which of the following themes are included in Aspirational Districts’ Programme?
1. Health and Nutrition
2. Education
3. Agriculture and Water Resources
4. Financial Inclusion and Skill Development
5. Basic Infrastructure
Choose the correct code
a) 1, 2, 3 and 4 only
b) 2, 3, 4 and 5 only
c) 1, 3, 4 and 5 only
d) All of the above
Q.40) Solution (d)
Living standards in India are affected by significant inter-state and inter-district variations. In
order to remove this heterogeneity, the government has launched in January 2018, the
‘Transformation of Aspirational Districts’ programme (ADP).
Aspirational Districts’ Programme
• Aspirational Districts are those districts in India that are affected by poor socio-
economic indicators.
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• These are aspirational in the context that improvement in these districts can lead to the
overall improvement in human development in India.
• The 115 districts were identified from 28 states, at least one from each state.
• At the Government of India level, the programme is anchored by NITI Aayog. In addition,
individual Ministries have assumed responsibility to drive the progress of districts.
• The objective of the program is to monitor the real-time progress of aspirational
districts.
• ADP is based on 49 indicators from the 5 identified thematic areas, which focuses
closely on improving people’s Health and Nutrition, Education, Agriculture and Water
Resources, Financial Inclusion and Skill Development, and Basic Infrastructure.
• With States as the main drivers, ADP seeks to focus on the strength of each district,
identify low-hanging fruits for immediate improvement, measure progress, and rank
districts.
• The broad contours of the programme are: Convergence (of Central and State Schemes)
which brings together the horizontal and vertical tiers of the government.
• Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors) which
enables impactful partnerships between government, market and civil society.
• Competition among districts driven by a spirit of the mass movement, it fosters
accountability on district governments.
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